Revolving doors were invented for Wall Street bankers
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Swiss bank UBS has been slapped with an $13+million fine, the third-largest ever levied by the City regulator, after it was discovered that four of the bank’s employees were able to use customer money to trade in currencies and metals markets.
As a result of the trading activity, the bank has been forced to pay compensation of more than $42million although the FSA established that it had not itself profited from the trading…
At one stage as many as 50 unauthorised transactions a day were taking place in foreign exchange and precious metals by four employees who were using customers’ money without authorisation and allocating losses to customer accounts. The events took place between January 2006 and December 2007 and were only uncovered by an internal whistleblower…
The FSA concluded that UBS had failed to manage and control key risks, failed to respond to warning signs that the internal controls were inadequate and failed to provide an appropriate level of supervision over customer-facing employees.
The bank made apologies, blah, blah – swore to implement oversight and regulation, blah, blah – it will never happen again, blah, blah.
Regulators are satisfied, blah, blah.
Don’t hold your breath!